Make-or-Buy Decision produce comparable carrying cases are expected to be as follows: Direct materials Direct labor Factory overhead ( 44% of direct labor) Total cost per unit $30 22 $61.689.68 Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) April 30 b. Assuming there were no better alternative uses for the spare capacity, it would to manufacture the carrying cases. Fixed factory overhead is to this decision